Prime Minister’s $2.2bn ideas factory

Scott Morrison will unveil a new $2.2bn federal fund aimed at bolstering Australia’s manufacturing strength.

Scott Morrison will unveil a research commercialisation plan on Tuesday in a bid to bolster Australia’s manufacturing strength. Picture: Gary Ramage

Australia’s world-leading researchers will be backed by a new $2.2bn federal fund to transform their big ideas into successful businesses.

Scott Morrison will unveil the research commercialisation plan on Tuesday in a bid to bolster Australia’s manufacturing strength and take on a key Labor line of attack ahead of the federal election.

A $1.6bn “economic accelerator” is at the core of the initiative to provide cash to innovators needing to prove their projects are viable and have commercial potential, helping them avoid the “valley of death” that often kills off risky and uncertain ventures.

Almost $300m will be spent on an extra 1800 industry PhD places – providing access to top academic qualifications to industry leaders – and 800 industry fellowships throughout the next decade.

The Prime Minister will set out the commercialisation program as part of a major speech in which he will seek to position Australia’s economic and health resilience as a defining issue for the May election.

Speaking to the National Press Club, Mr Morrison will also unveil a bonus of up to $800 for aged-care staff, in an effort to support the workforce that has been severely stretched through the coronavirus’ Omicron wave.

“Their resilience over the past two years has been inspiring,” he will say.

The bonus will be delivered in two payments of up to $400, with one in February and one in early May, at an overall cost of $209m.

The Prime Minister’s ­address follows the latest Newspoll figures, which found his government was in a challenging pre-election position and trailing Labor by 44-56 per cent on a two-party preferred basis.

In his speech, Mr Morrison is expected to address the difficulties of the summer – including Omicron, storms and floods – and explain what the government has learned.

The commercialisation pitch is an extension of the government’s effort to bolster manufacturing in medical products, food and beverage, recycling and clean energy, resources technology and critical minerals processing, defence and space.

The Prime Minister will say the country is underperforming in turning its “world class research” into commercial success stories, with only 40 per cent of the nation’s researchers working in private industry.

“We need to find and develop a new breed of researcher entrepreneurs in Australia,” he will say.

“This $2.2bn university research commercialisation package … will focus the considerable research power of our universities on Australia’s national economic priorities.”

The package includes $2bn of new money which has already been included in the budget, instead of being an election commitment.